N.Y. General Municipal Law § 6-d: Repair reserve funds for municipal corporations, school districts, district corporations and improvement districts

§ 6-d. Repair reserve funds for municipal corporations, school

districts, district corporations and improvement districts. 1. The

governing board of any municipal corporation, school district, district

corporation, or town or county improvement district, may establish a

special fund which shall be known as the repair reserve fund of such

municipal corporation, school district, district corporation or

improvement district. There may be paid into such fund an amount as may

be provided therefor by budgetary appropriation or such revenues as are

not required by law to be paid into any other fund or account.

2. In cases of emergency, moneys in such fund may be expended pursuant

to a resolution approved by not less than two-thirds of the members of

the governing body of such municipal corporation, school district,

district corporation or improvement district providing that not less

than one-half of the moneys so expended shall be repaid in the fiscal

year immediately following the fiscal year in which such moneys were

expended and the total amount shall be repaid not later than the last

day of the second fiscal year succeeding the fiscal year in which the

moneys were expended.

Prior to the adoption of any other resolution, act, ordinance or local

law by the governing board of such municipal corporation, school

district, district corporation or improvement district, appropriating

money from such fund, the governing board shall cause to be published in

the official newspaper or newspapers, if any, or otherwise in a

newspaper or newspapers designated for such purpose, a notice stating in

substance that it is proposed to appropriate a specified amount from the

repair reserve fund for a particular purpose, and that a public hearing

on such proposed appropriation will be held at a time and place stated

therein. At least five days shall elapse between the publication of such

notice and the date specified for the hearing. The hearing shall be held

at the time and place so specified.

3. Moneys in such fund may be appropriated only:

a. For repairs of capital improvements or equipment, which repairs are

of a type not recurring annually or at shorter intervals.

b. In the case of a municipal corporation, to a capital reserve fund

established pursuant to section six-c of this article or to a

contingency and tax stabilization reserve fund established pursuant to

section six-e of this article.

c. In the case of a fire district, to a capital reserve fund

established pursuant to section six-g.

d. In the case of a school district, to a reserve fund established

pursuant to section thirty-six hundred fifty-one of the education law.

4. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The moneys in such fund

so deposited shall be accounted for separate and apart from all other

funds of the municipal corporation, school district, district

corporation or improvement district, in the same manner as provided in

subdivision ten of section six-c of this article. The governing board or

the chief fiscal officer of such municipal corporation, school district,

district corporation or improvement district, if the governing board

shall delegate such duty to him, may invest the moneys in such fund in

the manner provided in section eleven of this article. Any interest

earned or capital gains realized on the moneys so deposited or invested

shall accrue to and become part of such fund.

5. The members of the governing board of such municipal corporation,

school district, district corporation or improvement district are hereby

declared trustees of such fund and shall be subject to all the duties

and responsibilities imposed by law on trustees, and such duties and

responsibilities may be enforced by such municipal corporation, school

district, district corporation or improvement district, as the case may

be, or by any board, commission, agency, officer or taxpayer thereof.

6. The members of the governing board of such municipal corporation,

school district or district corporation shall be guilty of a misdemeanor

if they:

a. Authorize a withdrawal from a repair reserve fund for any other

purpose except as provided in this section.

b. Expend any money withdrawn from a repair reserve fund for a purpose

other than that as provided in this section.

7. Notwithstanding the foregoing provisions of this section, in any

town which is located wholly or partly within the Adirondack park and

has within its boundaries state lands subject to taxation assessed at

more than thirty per centum of the total taxable assessed valuation of

town as determined from the assessment rolls of the town as completed

from time to time, or in any district corporation or improvement

district situated in whole or in part in any such town, a repair reserve

fund shall not be established unless the state comptroller, on behalf of

the state, shall consent thereto, and in any such town or district

corporation or improvement district no appropriation shall be made from

a repair reserve fund unless the state comptroller, on behalf of the

state, shall consent thereto.

8. Moneys of a municipal corporation, school district or district

corporation which, upon June thirtieth, nineteen hundred fifty,

constitute a repair reserve fund of such municipal corporation, school

district or district corporation, shall continue to so constitute a

special fund and be known as the repair reserve fund of such municipal

corporation, school district or district corporation. From and after

such date, payments to, and appropriations from, such fund shall be

subject to the foregoing provisions of this section.